Law and regulation

Audit / Big Four reject breakup in response to CMA study

An invitation to comment on a Competition and Markets Authority (CMA) audit market study has resulted in the Big Four unanimously rejecting the possibility of being broken up and expressing a range of opinions on market share caps and non-audit service restrictions

Audit / Oman suspends KPMG from beginning audits for a year

KPMG has been suspended from auditing entities regulated by Oman’s Capital Market Authority for a year following the discovery of what were described as ‘major financial and accounting irregularities’

Audit / FRC announces audit monitoring priorities

The Financial Reporting Council (FRC) has indicated it plans to focus on the use of audit quality indicators (AQIs) and applying technology in audits during its inspections for 2019/20, as the regulator released details of its thematic reviews, priority sectors and audit areas of focus

Audit / Grant Thornton against separating audit and non-audit practices of Big Four

In its response to the Competition and Markets Authority (CMA) review, Grant Thornton has called for a ban on firms receiving non-audit fees from Public Interest Entity (PIE) clients however does not believe that splitting Big Four audit and non-audit practices will be an effective remedy

Audit / BEIS committee begins inquiry into ‘broken’ audit market

The chair of the business, energy and industrial strategy (BEIS) committee has announced the launching of an inquiry into the future of audit, examining what steps need to be taken to restore public trust in the market

Audit / KPMG to abandon FTSE 350 non-audit services

KPMG is reportedly to become the first Big Four firm to cease non-audit work for FTSE 350 clients, according to leaked letter to its 625 UK partners, in a move intended to put it ahead of greater regulatory oversight

Audit / Landmark privilege rulings affect auditors and clients

What the Court of Appeal gives, the High Court takes away: two major decisions on legal professional privilege in the cases of ENRC v SFO and Financial Reporting Council v Sports Direct International plc have important ramifications for auditors and audit clients. Ross Dixon and Chris du Boulay at Hickman and Rose examine the decisions

Audit / Mazars calls for joint audits for UK listed companies

In Mazars' response to the Competition and Markets Authority (CMA) statutory audit market study, it says that it is ‘fully supportive of changes which propose to create a genuinely competitive audit market that addresses stakeholders’ needs’ and pushes for joint audits

Audit / FRC demands end to ‘basic errors’ in corporate reporting

The Financial Reporting Council (FRC) is warning listed companies that they need to do more to eliminate ‘basic errors’ in corporate reporting, saying its monitoring has shown a need for improvements in key areas

Audit / Audit will only change 'if it does not affect profit and loss'

A Financial Reporting Council (FRC) event concerning audit in 2018 saw discussion of the recent high-profile failures of companies, and questions raised this year about the regulator’s own effectiveness in maintaining quality in the audit sector

Audit / Brookes: legal professional privilege and confidential communications

Sophie Brookes, partner at Gateley plc, examines a court case in which an FRC investigation of Grant Thornton led to its client, Sports Direct, being forced to hand over sensitive documents

Audit / CMA launches audit market review

The Competition and Markets Authority (CMA) has announced the launch of its anticipated study of the audit sector, designed to examine concerns that it is not working well for the economy or investors because of the dominance of the Big Four and a lack of competition

Audit / IAASB issues ISA 540 (Revised) for audit of accounting estimates

The International Auditing and Assurance Standards Board (IAASB) has released International Standard on Auditing (ISA) 540 (Revised), its revised standard for the audit of accounting estimates and related disclosures

Audit / Listed companies ramp up reporting disclosures

Companies in the FTSE are preempting impending changes to corporate governance and reporting rules which take effect from January 2019, research by Deloitte shows

Audit / FTSE 350 reporting improves ahead of new governance code

Next year’s introduction of a new corporate governance code is already having an impact on reporting in the FTSE 350 ahead of the January 2019 deadline, according to analysis by EY which found indications that companies are already starting to provide information in new areas like company culture
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